The Purchase Price

In most instances French property prices will be quoted to you including the agent’s fees. Some UK based agents working in France will quote what they describe as a fully inclusive fee including legal charges and (often) a payment for some additional services. Many such additional services are of dubious value or even illegal and the only fair price to quote, in our opinion, is the house price including the agent's fee.

Having said that, in the event that you end up haggling over the price it makes sense for the vendor to concentrate upon the price he or she will finally receive so check on just what is included in the final agreed figure.

For an average property you should allow approximately 7% in addition to the purchase price for the notaire's fees and taxes on the purchase of an older property and around 4% of the purchase price for a new-built house. If you are purchasing building land the costs can be slightly more complex to calculate so ask your agent for the figure.

If you are arranging a mortgage with a French bank allow a little extra for the notaire in establishing of a legal charge against the property as well as any  set-up fees payable to the bank or broker. Under French law, life insurance for the mortgagee is compulsory and is paid along with the mortgage repayments. Most banks will have a standard Insurance arrangement, so, even if you already have a satisfactory life policy in place you will have to agree to, and pay for, a French policy for the duration of the mortgage. The life insurance fee will depend upon your age and (perhaps) occupation - allow a little more than you would expect to be charged for the same cover in the UK.

Normally you will be expected to pay your portion of the “Taxe Foncière” to the vendor. This property tax is payable in October every year in respect of that calendar year and the cost is normally split between the two owners on the basis of the number of days in the year each owns the property. This can’t be calculated accurately until the date of completion but you will need to allow for it in your budget. Your agent should be able to give you guidance on the likely figure.

You will need a deposit of 10% of the purchase price and this is payable at the expiry of the seven day cooling off period following the signing of the purchase agreement (compromis).

You will also need to insure the buildings from the day you complete the purchase. The notaire will want a certificate issued by your French insurance company if you have taken out a mortgage showing that the buildings are properly insured. This will be needed at the completion so must be arranged in advance. Your Estate Agent can normally sort out a policy with a local insurance agent.  As an alternative, it may be possible to take on the existing insurance policy from the vendor but check the insurance details before agreeing to this. The vendor is obliged to maintain his buildings insurance on the property until completion. It is a legal requirement in France that your property insurance includes public liability to third parties. If you take up property insurance from a source that is not French then please check that full public liability is included in the policy.